GSA Awards $12.5M for Janitorial Services to VGS Inc. Amidst Limited Competition

Contract Overview

Contract Amount: $12,522,279 ($12.5M)

Contractor: VGS Inc

Awarding Agency: General Services Administration

Start Date: 2008-03-19

End Date: 2013-09-30

Contract Duration: 2,021 days

Daily Burn Rate: $6.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JANITORIAL SERVICES

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44199

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $12.5 million to VGS INC for work described as: JANITORIAL SERVICES Key points: 1. Contract awarded to VGS Inc. for janitorial services. 2. Significant contract value of $12.5 million. 3. Competition method is 'NOT AVAILABLE FOR COMPETITION', raising potential concerns. 4. Sector is Facilities Support Services, a common area for government contracts.

Value Assessment

Rating: fair

The contract was awarded in 2008 and ended in 2013. Without current market data or specific service details, it's difficult to definitively assess pricing against similar contracts. The benchmark of $6,196 (likely annual or a significant portion) needs more context to be evaluated.

Cost Per Unit: $6,196

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive process.

Taxpayer Impact: The lack of robust competition may have resulted in the government paying more than necessary for janitorial services.

Public Impact

Taxpayers funded janitorial services for federal buildings. The contract duration spanned over five years. The specific federal agency involved was the General Services Administration (GSA).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of detailed pricing justification
Contract awarded over a decade ago

Positive Signals

Established contract for essential services
Fixed-price contract type can offer cost predictability

Sector Analysis

Janitorial services fall under the Facilities Support Services sector. Government spending in this area is substantial, covering maintenance and cleaning for federal properties nationwide. Benchmarks vary widely based on facility size, location, and service scope.

Small Business Impact

The data does not indicate whether VGS Inc. is a small business. Further analysis would be needed to determine the impact on small business participation in this contract.

Oversight & Accountability

The General Services Administration (GSA) is responsible for managing federal real estate and procurement. Oversight would involve ensuring VGS Inc. met contract requirements and that the pricing remained fair, though the limited competition aspect warrants scrutiny.

Related Government Programs

Janitorial Services
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Limited competition raises cost concerns.
Contract awarded over a decade ago, data may be outdated.
Lack of detailed service scope and pricing breakdown.
Potential for non-compliance if vendor capabilities were not thoroughly vetted.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $12.5 million to VGS INC. JANITORIAL SERVICES

Who is the contractor on this award?

The obligated recipient is VGS INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2008-03-19. End: 2013-09-30.

What was the justification for awarding this contract without full and open competition?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. This typically implies a sole-source award or a situation where only one vendor could meet the specific requirements. A detailed justification, often found in contract files, would explain the rationale, such as unique capabilities, urgent needs, or specific security requirements that limited the pool of potential bidders.

How does the per-unit cost of $6,196 compare to industry benchmarks for janitorial services?

The per-unit cost of $6,196 is difficult to benchmark without knowing what it represents (e.g., per building, per square foot, per year). Janitorial service costs vary significantly based on location, facility size, service frequency, and specific tasks. A direct comparison would require detailed service level agreements and regional cost data for similar government or commercial contracts.

What was the overall value proposition for the government given the limited competition?

The value proposition is questionable due to limited competition. While the government secured essential janitorial services, the lack of competitive bidding suggests potential overpayment. Without a competitive process, it's harder to ensure the government received the best possible price and quality for the $12.5 million spent over the contract's life.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Janitorial Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-05P-07-SL-C-0019

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2239 E 55TH ST, CLEVELAND, OH, 90

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,522,279

Exercised Options: $12,522,279

Current Obligation: $12,522,279

Timeline